BlueBay surpasses €3bn for senior loan fund – exclusive

The strategy is targeting larger deals where it believes the market is less competitive.

BlueBay Asset Management has raised more than €3 billion from institutional investors at the final close of its senior loan fund.

The strategy focuses on transactions at the larger end of the deal spectrum providing financing to upper mid-market companies across Europe and steering clear of the lower end of the market, where it believes activity is more competitive. So far, 12 percent of the fund has been committed in six deals. Transactions the firm is targeting range between €75 million and €300 million.

It seeks opportunities to invest in leveraged buyouts, M&A transactions, corporate financings and refinancing.

The fund has attracted commitments from a global network of investors and offers both levered and unlevered sleeves. 30 percent of the investors in the latest fund have committed to the firm’s other private debt strategies.

BlueBay’s private debt team has more than €7 billion of assets under management. The latest fundraising follows the closing of the second direct lending fund, which closed at the end of 2015 after raising more than €2 billion.

Anthony Fobel, head of private debt at BlueBay, said: “Together our senior loan and direct lending funds provide BlueBay with significant firepower to offer financing solutions to both private equity and corporate-backed businesses, to enable them to pursue their acquisition and growth objectives.”

He added: “We continue to see a very strong pipeline of investment opportunities across Europe as economies pick-up, M&A markets remain strong and the structural shift towards alternative lenders accelerates.”

Fried Frank served as legal counsel on the fundraising.